RERA

Full form: Real Estate (Regulation and Development) Act

Personal Finance

RERA (2016) is India's landmark real estate regulation that protects homebuyers by mandating developer registration, project escrow accounts, carpet area pricing, and penalty for delays. Buyers can file complaints against developers through state RERA authorities.

In detail

Key RERA protections for buyers:n1. Developers must disclose carpet area (not super built-up) for pricingn2. 70% of collection must go into project escrow accountn3. Delay penalty: developer must pay interest at SBI MCLR+2% for delayed possessionn4. Buyer's right to withdraw and get full refund + interest if project is unreasonably delayedn5. Developer cannot change approved plan without 2/3 buyer consentn6. RERA registered agents only can sell RERA projectsnnState RERA websites: maharera.mahaonline.gov.in, rera.karnataka.gov.in, hrera.org.in, etc.

Real-life example

🇮🇳 India example

Sunita buys a RERA-registered flat with promise of December 2024 possession. Possession delayed to December 2025. She files RERA complaint. Developer ordered to pay interest at MCLR+2% (approximately 10.5%) on her instalments paid during the delay period. On Rs 40L instalments: approximately Rs 4.2L compensation.

Frequently asked questions

How do I verify if a project is RERA registered? ▼

Visit your state's RERA website, search by project name or registration number. Check: (1) Registration is valid and not expired, (2) Promoter details match, (3) Escrow account details present, (4) No major pending complaints or litigations. Never buy from an unregistered project.